House Passes Measure To Bar New Wireless Taxes

The House passed legislation that would temporarily bar states and localities from imposing some new taxes on wireless services like smart phones.

The legislation, authored by Reps. Zoe Lofgren (D-CA) and Trent Franks (R-AZ) would impose a five-year moratorium on new state or local taxes on wireless services, unless they are already imposed on other goods and services. The bill's supporters say states and localities are taxing wireless services, which includes service for mobile phones, iPads and other wireless devices, at rates as high as three times the average state sales tax of 7 percent. "This bill would not affect any existing revenues. In fact, it wouldn't affect the ability [of states] to raise taxes on all goods," Rep Lofgren said during the House debate on the bill. "What it would do is keep [states and localities] from singling out wireless services for disproportionate taxation." State and local officials worry the bill would limit their ability to raise revenues, so in July the House Judiciary Committee amended the bill to allow a state or city to impose a new wireless tax if it is approved by the affected voters. Despite this, many groups remain opposed, including the National League of Cities and the National Governors Association